It is cheaper to buy than rent, new study shows

It is cheaper to buy a house than rent one in a record number of suburbs across Australia, a new study has shown.

According to the RP Data Buy Vs Rent report, there are now 388 places where Aussies will find it more affordable to secure a mortgage, rather than paying money to a landlord each month.

Many people have been priced out of the housing market in the past, but average property values have since tumbled.

Interest rates have also nosedived in the past year, so it is far easier for people to buy their own pad.

RP Data's national research director Tim Lawless said: "In some suburbs, buying may actually be cheaper than renting, especially where we are seeing evidence of tight rental markets resulting in rental increases."

This study ties in with research recently undertaken by Commonwealth Bank, which showed 71 per cent of Aussies feel rent rates are currently far too high.

A further 50 per cent insisted they were caught in a "rental trap".

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